1. Preheat oven to 325 degrees
  2. Mix condensed milk, evaporated milk, ½ cup of sugar, vanilla, and eggs and set aside.
  3. In a saucepan dissolve the remaining cup sugar in water over a low heat until it becomes syrupy and tan in color.
  4. Pour the caramel in a glass baking dish and pour the milk mixture on top.
  5. Take a slightly larger glass dish and fill halfway with water.
  6. Place the dish with the milk mixture inside the larger dish and cover with foil.
  7. Place in prepared over; cook at 325 degrees until custard is completely cooked (30–45 minutes).
  8. Cool and chill.

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